Before marketing your commercial property, there are a number of compliance matters, which if addressed before the property is sold, can result in a smoother and quicker transaction, reducing the risk of delays and potentially leading to a more favourable sale or refinancing outcome.
The first thing to ensure is up to date, is the Energy Performance Certificate (EPC) for the property. This provides an indication to a buyer of the property’s energy consumption and costs, as well as providing recommendations as to how the performance can be improved, by lowering energy consumption and therefore cost.
An up to date EPC is a requirement for anyone selling or leasing property and so ensuring that you have one for your property, will prevent delays to the process. A good EPC result will also be a positive selling point.
The next document you should have in order for a commercial property to be compliant is a Fire Risk Assessment (FRA). The purpose of an FRA is to identify any fire hazards within the property and outline how those risks can be mitigated, managed and reduced. It also shows a potential purchaser that the property complies with current fire safety regulations.
If you have five or more employees at the property, you should keep a written record of the FRA and the recommendations made, regarding those people who may be at risk and how those risks can be managed or reduced.
If you have a FRA in place, it is a good indicator to potential purchasers that the property has been well maintained and that it complies with safety regulations. You will therefore help to give a buyer comfort that it will not face legal or financial liability following completion due to any breaches of safety regulations.
If the property which you are selling was built prior to 2000, it may contain asbestos. Asbestos is carcinogenic and was used as an insulating material in many buildings until it was banned in 1999.
As Asbestos can create significant health risks to those who come into contact with it, the presence of such material can have a negative impact on the value and saleability of a property. It may also make such property expensive to insure or in some case uninsurable.
If your property has asbestos in it or you suspect that asbestos may be present, you should arrange for an asbestos survey to be undertaken. You will need an accredited surveyor to undertake the survey.
A survey will identify any asbestos present at the property and will also determine whether any further action will be necessary in respect of that material. If Asbestos is in good condition, you may be able to maintain and manage it in situ. Sometimes it is necessary to have the asbestos sealed off or removed all together, depending on its type and condition.
Providing a clear asbestos survey, as well as a management plan and risk assessment will help to reduce buyers concerns. As surveys of asbestos can take time, undertaking one in advance of the sale, will save time and also being up front with your buyers regarding the presence of asbestos can help to avoid renegotiation of the price further along in the sales process.
To conclude therefore, ensuring that you have all the necessary documentation in place to meet the compliance requirements before marketing your property will prevent delays, improve buyer confidence and may enhance your negotiating position.
If you need any assistance or advice in respect of the sale of a commercial property, Nicolle can be contacted by email or on 01494 893514.